How to Build a Churn Rate Calculator
Churn rate measures the percentage of customers who stop using your product over a given period. A churn rate calculator helps subscription businesses identify retention problems and forecast revenue.
What is a Churn Rate Calculator?
Churn rate is the inverse of retention. Customer churn counts lost customers; revenue churn measures lost revenue (more accurate for variable pricing). Net revenue churn can be negative if expansion exceeds losses.
The Formula
Customer Churn Rate = (Customers Lost / Starting Customers) × 100 Revenue Churn Rate = (MRR Lost / Starting MRR) × 100 Net Revenue Churn = (Churned MRR - Expansion MRR) / Starting MRR × 100
Code Example
function calculateChurnRate(lost, starting) {
if (starting === 0) return 0;
return (lost / starting) * 100;
}
function calculateRevenueChurn(lostMRR, startingMRR) {
if (startingMRR === 0) return 0;
return (lostMRR / startingMRR) * 100;
}
function calculateNetRevenueChurn(churned, expansion, starting) {
if (starting === 0) return 0;
return ((churned - expansion) / starting) * 100;
}How to Build It
- 1
Create period selector (monthly, quarterly, annual)
- 2
Add inputs for starting count/MRR and lost count/MRR
- 3
Implement both customer and revenue churn calculations
- 4
Add expansion MRR input for net revenue churn
- 5
Display benchmarks by industry vertical
Key Features to Include
Both customer and revenue churn metrics
Net revenue churn with expansion factored in
Industry benchmarks for comparison
Cohort-based churn analysis
Churn prediction based on historical trends
Monetization Strategies
Feature in retention analytics platform
Early warning system for at-risk customers (paid tier)
Integration with customer success tools
Benchmark reports by industry (premium content)
Recommended Tech Stack
Frontend
React with D3.js for cohort visualizations
Backend
Time-series database for historical churn data
Hosting
AWS Lambda for scheduled churn calculations
Related Keywords (12 in database)
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